Oregon Public Utility Commission officials announced Wednesday that they plan to start regulating the Crooked River Ranch Water Company once again.

In April 2006, the PUC took over the water company after nearly 400 people, or 20 percent of the water company’s customers, signed a petition asking the commission to take jurisdiction over the company.

The PUC decision was appealed, and in December, the Oregon Court of Appeals ruled the PUC did not follow proper procedures and sent the case back to the commission for reconsideration. Late Wednesday, the Public Utility Commission ruled the water company needs oversight and again took over jurisdiction.

“There is concrete evidence of widespread member dissatisfaction,” said Bob Valdez, a spokesman for the utilities commission. “There are examples of excessive water management compensation, obvious conflicts of interest and consumer complaints that include withholding services.”

Valdez said some water customers are afraid to complain about the company for fear that their water will be shut off.

Officials from the Crooked River Ranch Water Company could not be reached Wednesday evening. After the Dec. 24 Court of Appeals decision, the company’s lawyer said the managers felt the takeover was unjustified and said the takeover nearly bankrupted the water company.

The commission will reinstate a lower water rate for customers and attempt to distribute more than $130,000 back to water customers that officials from the commission said was unfairly collected. When the commission took over the first time, it lowered monthly bills and eliminated an $8 capital assessment surcharge that was being added to customers’ bills.

Officials from the Crooked River Ranch Water Company have 15 days to appeal the PUC’s decision. If they ask for a hearing, it will be held no later than 60 days after they make the request.

“We feel we’re on solid legal ground,” Valdez said. “We’re trying to get back out there for the customers of Crooked River Ranch Water Company that have asked us to be there.”

Controversy has embroiled the water company for more than two years. Feuding between customers and the water company’s general manager has resulted in numerous lawsuits.

The Department of Justice spent three years investigating the water company and found no criminal charges. But investigators did outline questionable practices and procedures within the company. The document questioned the validity of the company’s bookkeeping, in part because it was done by the wife of general manager J.R. Rooks. The report also pointed out that between 2001 and 2005, Rooks and his family received $837,637 from the company for wages, maintenance contracts and employee benefits.